KUALA LUMPUR (Apr 19): AirAsia X Bhd has agreed to provide commercial sharing services to PT Indonesia AirAsia (IAA) for its inbound and outbound flights.

In a filing with the stock exchange today, the long-haul budget carrier said that it has signed a commercial services agreement with IAA which will be renewed on an annual basis, and has a contract price of RM25,000.

The agreement currently covers AirAsia X providing services such as line operations and manpower as well as government and regulatory liaison services to IAA in its Perth station.

“As the agreement is entered into on the basis of the sharing of resources and costs between Air Asia X and IAA, Air Asia X will reduce its operations cost at each of the stations that IAA flies to or intends to fly to,” said AirAsia X.

IAA, the Indonesian associate of AirAsia Bhd, is a low-cost airline operating both domestic and international routes in Indonesia, with hubs in Jakarta, Bali, Surabaya and Medan.

IAA is deemed to be a related party to AirAsia X by virtue of the fact that AirAsia wholly owns AirAsia Investment Ltd, which holds 49% shareholdings in IAA, and also because AirAsia directors and major shareholders Datuk Kamarudin Meranun and Tan Sri Tony Fernandes are also the directors and major shareholders in AirAsia X.

Air Asia X’s shares closed up one sen or 2.56% higher at 40 sen for a market capitalisation of RM1.66 billion.